Did anti-regulation lobbying fuel the subprime crisis?

Deniz Igan, Prachi Mishra, 11 August 2011Did anti-regulation lobbying fuel the subprime crisis? This column shows that there is a strong relationship between financial industry lobbying and favourable financial regulation legislation. It argues that the financial industry fought, and defeated, measures that might have curbed some of the reckless lending practices that many think played a pivotal role in igniting the crisis.Full Article: Did anti-regulation lobbying fuel the subprime crisis?

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Deniz Igan, Prachi Mishra, Thierry Tressel, 27 January 2010Should the political influence of large financial institutions take some blame for the financial crisis? This column presents evidence that financial institutions lobbying on mortgage lending and securitisation issues were adopting riskier lending strategies. This contributed to the deterioration in credit quality and to the build-up of risks prior to the crisis.Full Article: Lobbying and the financial crisis

Successive Reserve Bank of India chiefs have faced bigger challenges than the government meddling in their affairs — poor quality data with which they have to call interest rates, and a research infrastructure that falls short of needs. Governor Duvvuri Subbarao termed the central bank's rate setting job 'analytically bewildering', and his successor Raghuram Rajan recently lamented that the country needs capable economists, which 'I see every day in my work.' They are reflections on the state of affairs.

As noted last week, the aggregate amount of loans for new and used cars will in short order eclipse the $1 trillion mark, joining total student debt in full-on bubble mode. Better still, early delinquencies on auto loans are now sitting back at their 2008 highs (both for all borrowers and for subprime borrowers, with 9% of the latter now missing a payment within the first 8 months of origination).

Ezra Klein's Wonkblog continues its master class in how America works--and in the process continues its chronicle of the Republican War Against Reality.
Nobody has any business working for, contributing to, or voting for these clowns. Nobody:

This guest post was contributed by Norman I. Silber, a Professor of Law at Hofstra Law School, and Jeff Sovern , a Professor of Law at St. John’s University. They were principal drafters of a statement signed by more than eighty-five professors who teach in fields related to banking and consumer law, supporting H.